Nigeria’s new gas, oil policy to stimulate competitive environment for local, foreign investors, says oil minister

Ibe Kachikwu, Nigeria’s minister of state for petroleum resources said Tuesday that the country’s new gas, oil policy, bold steps to restructure the country’s industry, would play a critical role in the industrialisation initiative, particularly stimulating competitive environment that will be attractive to foreign and local investors.

The minister who made the disclosure at Light up Nigeria conference organized by Brandzone Consulting, said that government the approval by the Federal Executive Council (FEC), of the county’s gas policy was a clear indication of government’s readiness to fully tap the opportunities available in the midstream sector of the industry.

Kachikwu in his remarks at the conference in Lagos themed, “Repositioning the energy sector for growth” said the government identifies that natural gas will be an essential part of the future energy mix as the world moves to a low carbon future.

The minister, represented by Adiniji Gbite, his Special Adviser, Technical, explained that the gas policy has certainly provided the path to tackle all the identified challenges in the sector and its implementation will definitely lead to long-term development plan.

Kachikwu stressed that the country’s reform programmes for the gas sector is set out in the National Gas Policy and will additionally be clarified by proposed legislation that will tackle gas commercialization and with very clear rules or gas activities from the upstream, midstream and downstream sectors.

The legislation, he explained will treat gas as an independent commodity rather than a by-product of oil production and also explains the fiscal regime, adding that the legislation will also herald a simplified but clearly defined licensing administration which will regulate the licensing of operators throughout the entire value chain.

He said government recognises the benefits of natural gas as part of its efforts to meet the nations energy need and environmental responsibilities, and accordingly the gas policy articulates a vision for the sector and sets policy goals.